Melcor (real estate) Developments is updated and rated (higher) Buy at $15.55. If you wish to own a real estate investment, Melcor seems like a good choice. It does not have a high dividend but instead invests most of the earnings for growth (and has not issued any new shares in at least a decade). I would far rather own this at 82% of book than RioCan at about 150% of book. Both companies mark their rental buildings to market value. But Melcor’s largest asset is a land inventory that is not marked to market and is likely worth more than its book value. Both companies would post losses on market value if interest rates rise significantly. Melcor however could suffer a larger decline in adjusted earnings because its earnings depend largely of sales of building lots rather than collecting rent. If one is confident that the Alberta economy will remain strong then Melcor looks quite attractive. Note that the Melcor shares are thinly traded. with patience you may be able to buy at a better price. Click the price in the table above and study the trading prices in the past few days or weeks before attempting to buy.
It would seem that markets are vulnerable to the continued madness in Europe. However that has continuously been the case for many months. It may be wise to position with some cash in case a market “correction”. However, I am not prepared to put my investing on hold due to such fears. The time to buy shares is when the money available and they seem well priced. The only time to reduce equity positions substantially is probably during stock market bubbles. Stocks are certainly not in bubble territory. Yes, they could decline regarding the Europe situation but other than perhaps some trimming to have cash available I am not going attempt to guess the impact of the situation in Europe.
Between yesterday (with U.S. markets open) and today, our stocks picks did quite well.
As of 12:30 am eastern time markets are set to open about 50 points down on the DOW (never a dull moment, it seems).